4) SIGNIFICANT ACCOUNTING POLICIES
(Cont’d)
i)
Intangible Assets
i)
Research and Development Costs
Expenditure on research activities is recognised as an expense in the period in which
it is incurred.
An internally-generated intangible asset arising from development (or from the
development phase of an internal project) is recognised if, and only if, all of the
following have been demonstrated:
(i) the technical feasibility of completing the intangible asset so that it will be
available for use or sale;
(ii) the intention to complete the intangible asset and use or sell it;
(iii) the ability to use or sell the intangible asset;
(iv) how the intangible asset will generate probable future economic benefits;
(v) the availability of adequate technical, financial and other resources to complete
the development and to use or sell the intangible asset; and
(vi) the ability to measure reliably the expenditure attributable to the intangible
asset during its development.
The amount initially recognised for internally-generated intangible assets is the sum
of the expenditure incurred from the date when the intangible asset first meets the
recognition criteria listed above. Where no internally-generated intangible asset can
be recognised, development expenditure is recognised in profit or loss in the period
in which it is incurred.
Subsequent to initial recognition, internally-generated intangible assets are reported at
cost less accumulated amortisation and accumulated impairment losses. Capitalised
development costs recognised as intangible assets are amortised from the point
at which the asset is ready for use on a straight-line basis over its useful life, not
exceeding 5 years.
ii) Goodwill
Goodwill is initially measured at cost. Following initial recognition, goodwill is measured
at cost less any accumulated impairment losses.
For the purpose of impairment testing, goodwill acquired is allocated, from the
acquisition date, to each of the Group’s cash-generating units that are expected to
benefit from the synergies of the combination.
Asia Media Group Berhad Annual Report 2014
90
NOTES TO THE FINANCIAL STATEMENTS
(Cont’d)
